Bad News or Good - Are You Hearing the Whole Story?

By
Real Estate Agent with Keller Williams Capital Properties DC AB15253

I wanted to share some information from Keeping Current Matters which I read this morning - and add my thoughts to it. There’s a lot of anxiety right now regarding the coronavirus pandemic, the health situation, and the impact on the economy.  I believe our job is stay calm ourselves, follow the rules regarding our health, continue to work in and on our business, and to share helpful information with our clients and community.

Unfortunately,  there are a lot of horrifying headlines put there, which don't always reflect the information in the articles themselves.  It is really important to read the whole story.  Here are two examples of misleading headlines that Keeping Current Matters referenced.

1. Goldman Sachs Forecasts the Largest Drop in GDP in Almost 100 Years

I read this and it sounds pretty bad ... if you stop with the headline. However, the headline doesn’t reflect the full essence of the Goldman Sachs forecast. Goldman actually expects that we’ll have a tough first half of the year, but the economy will bounce back nicely in the second half; GDP will be up 12% in the third quarter and up another 10% in the fourth.

This is consistent with research from John Burns Consulting that stated:

“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.”

The economy will suffer for the next few months, but then it will recover. Assuming that there are not additional bumps in the road we are traveling together, we will survive!

2. Fed President Predicts 30% Unemployment!

James Bullard, President of the Federal Reserve Bank of St. Louis, actually said was unemployment “could” reach 30%. But let’s look at what else he said in the same Bloomberg News interview:

“This is a planned, organized partial shutdown of the U.S. economy in the second quarter,” Bullard said. “The overall goal is to keep everyone, households and businesses, whole” with government support.

According to Bloomberg, he also went on to say:

“I would see the third quarter as a transitional quarter” with the fourth quarter and first quarter next year as “quite robust” as Americans make up for lost spending. “Those quarters might be boom quarters,” he said.

Again, Bullard agrees we will have a tough first half and rebound quickly.

Bottom Line

There’s a lot of misinformation out there. As local realtors, we have a responsibility to our clients, community, and colleagues to stay calm and share the real information - not the rabid, terrifying headlines.

 

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Rainmaker
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Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Lise... opinions these days are a dime a dozen, as they say. We have to very vigilant in figuring out what is real and not and communicating that to our clients.

Mar 31, 2020 09:02 AM #1
Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lise, great post, and you are right, lots of information, good/bad, right/wrong going around, but I don't plan to predict either.

Mar 31, 2020 09:09 AM #2
Rainmaker
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Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

KCM shares a lot of wisdom, as do you with this post, Lise. Gloom and doom sell, and always have; best to look beyond the headlines. Thanks for your research.

Mar 31, 2020 09:17 AM #3
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Lise,

And the BS keeps grow via the Piled Dried and High talking heads.  I would rather go to a psychic with a crystal ball and a turban instead of listening, let alone reading all this gobbledi gook, most of it written for self-aggrandizement and google juice...A

Mar 31, 2020 09:39 AM #4
Rainmaker
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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Lise,  I heard unemployment could be 32% and in the Depression it was only 24%, lets hope this is not right and the governemnt does not run out of ink for the printing press of money.

 

Mar 31, 2020 10:52 AM #5
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Lise these numbers would be alarming if they were happening because of bad economy, they are NOT.  The cause is the virus, NOT the economy.  Once we have a handle on it, those numbers will go down drastically.  a

Mar 31, 2020 11:44 AM #6
Rainmaker
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Lise Howe - sensationalisms sells and that is what news is doing.  But they do leave out the rest of the story.

Mar 31, 2020 01:31 PM #7
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Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Thank you for sharing this and being the voice of reason in a ratings fiasco...

FEAR  doesn't have to be driving ratings ...

Another Happy Tuesday from me to you and your family Lise Howe 

Mar 31, 2020 06:06 PM #8
Rainmaker
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James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Lise.

If I believed all the hype with the media, this would be Armageddon.  While I do believe we have an issue, we have lived thought tougher times

Apr 01, 2020 12:50 AM #9
Rainmaker
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Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It is sad, but I don't think the news ever tells us the whole story.  It always seems to be biased in one way or another.

Apr 01, 2020 07:09 AM #10
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Lise- talking heads...people who have to point fingers...information taken out of context...Personally, I'm sick of it. You have to go beyond the headlines and read what was written. People who write these are counting on people who only read the headlines and nothing more. 

Apr 01, 2020 06:36 PM #11
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Prospective home sellers and home buyers will need professional advice during this difficult time.

Apr 04, 2020 08:48 AM #12
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Hi Lise, this is a good advice. And, we all need to be the calm and cool resource in this - headlines sell, but without context, it means very little. 

Apr 04, 2020 08:57 AM #13
Rainmaker
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Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

All of the media needs to be taken with a grain of salt, and remember that most of them just exist to sell advertising.  I try to get my news from unbiased sources like NPR.

Apr 05, 2020 08:22 PM #14
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Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Hi Lise:

We certainly have to be careful about the sources of information, and to not just look at the headlines. Problem is, that's what many people do and they do not get the full picture from the article. And truth is, at this point we really don't know what things will look like a few months from now, and later in the year!

Jeff

Apr 06, 2020 04:31 PM #15
Rainmaker
2,173,660
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

It is frustrating. So often the article doesn't at all say what the headline suggests. Many times the photo associated with the article has nothing to do with the article too.

I see this mostly on fb. It is frustrating how many people "share" them without even reading them. So many people are reading only the headline and making the wrong assumptions.

Apr 08, 2020 08:18 AM #16
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Lise Howe

Assoc. Broker in DC, MD, VA and attorney in DC
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